US Government Shutdown Begins, Travel Faces $1B Weekly Loss

At 12:01 AM EDT on October 1, 2025, the US federal government officially shut down after Congress failed to pass a short-term spending bill to fund government operations.

The shutdown resulted from a deadlock between Republicans and Democrats, mainly centered on disagreements over federal budget levels, health insurance subsidies, and cuts to foreign aid.

This marks the first federal shutdown since 2018 and the third during President Donald Trump's administration, with the first two occurring during his first term.

Approximately 900,000 federal workers have been placed on furlough, while about 700,000 remain on the job without pay.

The Global Business Travel Association (GBTA) and the US Travel Association have issued warnings about the shutdown's economic impact on the travel sector, estimating losses of approximately $1 billion per week. They are urging Congress to reach a quick agreement to prevent further harm.

The shutdown threatens vital government functions critical to travel, including FAA oversight, passport issuance, and TSA security operations, resulting in delays and cancellations.

National parks and numerous federal facilities are likely to close, suffer neglect, and accumulate waste due to staffing shortages.

Maintenance and development projects for travel infrastructure may also be postponed, potentially lowering travel quality and safety.

As of October 1, 2025, preliminary negotiations in the Senate were described as "productive discussions." However, no agreement to end the shutdown had been reached, as both parties remain at odds.

A week ago, President Donald Trump announced a major increase in the H-1B visa petition fee to $100,000, up from the previous $995. This sudden change sparked panic among visa holders and employers, particularly in the tech sector, leading to urgent travel cancellations and complicating future hiring of specialized foreign workers.

Photo by Cesar Done on Unsplash